TY  - JOUR
AU  - Krishna,Kala
AU  - Yavas,Cemile
TI  - Lumpy Consumer Durables, Market Power, and Endogenous Business Cycles
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8296
PY  - 2001
Y2  - May 2001
UR  - http://www.nber.org/papers/w8296
L1  - http://www.nber.org/papers/w8296.pdf
N1  - Author contact info:
Kala Krishna
Department of Economics
523 Kern Graduate Building
The Pennsylvania State University
University Park, PA 16802
Tel: 814/865-1106
Fax: 814/863-4775
E-Mail: kmk4@psu.edu
AB  - This paper examines the role of lumpy consumer durables and market power in generating endogenous cycles which seem to be consistent with the facts. When goods are durable, past consumption choices determine the current market size which consists of consumers who have not purchased the good previously, and who have the income to make their potential demand effective. Larger past sales, ceteris paribus, thus naturally result in a smaller current market size and income. In this manner, the seeds of a downturn are sown in an upturn.
ER  -